You know that moment when you taste something so good you want to put it on everything in your fridge, that’s Thai peanut sauce, not just any one but an authentic peanut sauce. Well, I have got an easy Thai peanut sauce recipe you can use as a dipping sauce on chicken satay sticks and anything else you can think of.
Most recipes overcomplicate this or water it down until it tastes like peanut butter with sugar ….. yuk. This version is different. It’s got the perfect balance of umami flavour making it ideal for most Asian recipes, and it comes together in less time than it takes to get takeaway.
Here’s how to make the best Thai peanut sauce to use on all of your favourite dishes, especially our Satay Chicken Sticks for the perfect companion. You will think you’ve just hopped off the plane in Thailand.
Equipment You’ll Need
The good thing is you don’t need any fancy gear to make it. A stick blender or food processor is your only must have really to blend the homemade peanut sauce to a silky smooth consistency. Everything else should be in your kitchen cupboard. So let’s get going, you’ll need the following:
- Micro plane or fine grater for fresh ginger and garlic
- Measuring cups and spoons to keep it consistent
- Small saucepan to bring it all together
See, not too much equipment required, let’s check out the ingredients.
Ingredients for Easy Thai Peanut Sauce

Most people that like to cook Asian style meals will have just about all these simple ingredients on hand.
Sesame oil: Adds a nutty, toasted depth.
Fresh ginger: Spicy, floral, and essential. If you don’t have fresh, leave it out rather than faking it.
Fresh Garlic: Jarred minced garlic works if you’re in a bind, but fresh is always better.
Chili paste: For a little bit of a kick. Sambal oelek, gochujang, or sriracha all work. Start with less and add more at the end. If you don’t have any, red pepper flakes and a tiny splash of rice vinegar can stand in.
Peanut butter: This is the body of the sauce. Use natural peanut butters if you want a more refined flavor in your peanut dipping sauce, Store bought peanut butter is fine just avoid anything with added sugar or it’ll taste like dessert.
Coconut Milk: Organic coconut milk is our choice for this dipping sauce it brings such an authentic flavour to your Asian dishes.
Soy sauce: The salty, umami backbone. Low-sodium is fine, but you’ll need to add a pinch of salt later. Tamari works if you’re gluten-free.
Lime juice: The lime will give it the zing you need. If you only have lemon, use it, but not quite as much.
Brown sugar or maple syrup: Balances the salt and heat with just enough sweetness.
Water: Thins the sauce to the right consistency. Use extra Coconut milk if you want a richer and slightly, creamier sauce.
Crushed peanuts: For the crunch in the satay sauce, you can leave this out if you like it extra smooth.
You can find everything except maybe the chili paste at a regular grocery store. Asian markets will have better options for soy sauce, rice vinegar, and chili pastes, and they’re usually cheaper.
Instructions
This comes together pretty quick, so have everything measured and ready before you start.
- Measure out all of the ingredients: Measure the ingredients and have them ready for cooking the sauce.
- Grate your ginger and garlic. Use a microplane or the smallest holes on a box grater. You want a paste, not chunks. If you see visible pieces, keep grating or mince finer.
- Put a saucepan on the stove: Turn heat to high and add a little peanut oil then the ginger, garlic and chilli paste and cook for a couple of minutes until fragrant.

- Add the peanut butter, coconut milk. Turn the heat down and add the peanut butter, coconut milk, soy sauce, lime juice. Don’t add the water or the sugar yet.

- Simmer for 5 minutes while adding water. Start adding the water a little at a time while simmering to get the right consistency. Have a little taste and add in half the brown sugar, test again before adding the rest.
- Add crushed peanuts: Fold in the crushed peanuts for an authentic crunchy Thai peanut sauce or leave them out if you’re into a smoother sauce.

- Taste and adjust. This is where you make it yours. Need to add salt? Add a splash more of soy sauce. Want it tangier? More lime juice. Spicier? Add some more chili paste. Sweeter? A bit more brown sugar. The goal is a sauce that makes you want to lick the spoon, yummo.
And that’s about it, let it sit for a few minutes for the flavours to infuse before serving.

Serving Ideas
This sauce is great for anything you can think of. Use it as a dipping sauce for Satay Chicken, a “mayonnaise” for your favourite salad, as a base sauce for satay pizza’s (this is awesome), whack it on some steamed vege’s, use it on steamed rice and noodles, you are only limited by your imagination.


Authentic Thai Peanut Sauce
Equipment
- 1 micro plane or grater fine holes
- 1 Measuring cups and spoons various sizes
- 1 Saucepan medium size
Ingredients
- 1 tbsp sesame oil
- 2 cloves garlic finely grated
- 1 tbsp ginger finely grated
- 1 - 2 tsp chilli paste
- 1/2 cup peanut butter all natural, smooth peanut butter is best
- 1 cup coconut milk
- 2 tbsp soy sauce kecap manis is great for sweater flavour
- 2 tbsp lime juice fresh is best
- 2 tsp brown sugar
- 1/2 cup water or extra coconut milk for a creamier sauce
- 1/2 tsp salt
- 1/4 cup unsalted crushed peanuts
Instructions
- Heat sesame oil in saucepan and add garlic, ginger and chilli paste and cook over medium-high heat for 2-3 minutes until fragrant.
- Turn the heat down to low-medium and add peanut butter, coconut milk, lime juice, soy sauce and cook for 5 minutes while adding half the sugar and adding the water slowly to the desired thickness.
- Do a little taste and check for additional seasoning like salt, more lime or soy sauce, extra coconut milk. Just go by feel till it bang on.
- Add the crushed peanuts for that authentic Asian crunch. (Leave them out if you want smooth sauce).

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